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Flexible Contracts and Human Capital Investments

  • Didier Fouarge

    ()

  • Andries Grip

    ()

  • Wendy Smits
  • Robert Vries

As suggested by human capital theory, workers with flexible contracts participate lessoften in training than those with permanent contracts. We find that this is merely dueto the fact that flexworkers receive less employer–funded training, a gap they can onlypartly compensate for by their own training investments. Flexworkers particularlyparticipate less in firm–specific training that is meant to keep up with new skilldemands than workers with permanent contracts. However, for those who participatein employer–funded firm–specific training, a temporary contract appears to facilitatethe transition to a permanent contract with the same employer. However, this doesnot hold for participation in self–paid training. This training, which is usually generaltraining, does not help in finding a better job.

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Article provided by Springer in its journal De Economist.

Volume (Year): 160 (2012)
Issue (Month): 2 (June)
Pages: 177-195

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Handle: RePEc:kap:decono:v:160:y:2012:i:2:p:177-195
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100260

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  9. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
  10. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones or Dead Ends?," LABORatorio R. Revelli Working Papers Series 8, LABORatorio R. Revelli, Centre for Employment Studies.
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  12. Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
  13. Bierings Harry & Cörvers Frank & Montizaan Raymond & Vries Robert de, 2009. "Beroepenmobiliteit: Bruikbaarheid longitudinale gegevens Enquête Beroepsbevolking," ROA Technical Report 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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  17. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December.
  18. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
  19. Jorn-Steffen Pischke, 2001. "Continuous training in Germany," LSE Research Online Documents on Economics 2473, London School of Economics and Political Science, LSE Library.
  20. José Arranz & Carlos García-Serrano & Luis Toharia, 2010. "The Influence of Temporary Employment on Unemployment Exits in a Competing Risks Framework," Journal of Labor Research, Springer, vol. 31(1), pages 67-90, March.
  21. Jonker N. & Grip A. de, 1999. "Do employees with Flexible Contracts receive less Training?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  22. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  23. Philip Murphy & Paul L. Latreille & Melanie Jones & David Blackaby, 2008. "Is There a Public Sector Training Advantage? Evidence from the Workplace Employment Relations Survey," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 674-701, December.
  24. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
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